Warner Bros. Discovery, Inc. Q4 FY2025 earnings call

• Film: 2025 saw historic box office success with nine number one films, 7 films over $40M opening, 16 weeks atop global box office. 2026's Wuthering Heights opened number one with over $160M global box office in 2 weeks. 2027 film slate has major tentpoles. • TV: HBO had hits in Q4 like It, Welcome to Derry and Heated Rivalry. Momentum ongoing with new seasons of shows seeing audience growth. • Streaming: Scaled HBO Max globally, exceeded 130M subscriber target, on track to reach over 140M by end of Q1 2026 and over 150M by end of 2026. • Linear Networks: 17 of top 25 new cable TV series last year, 30% of primetime cable viewing in U.S., saw ad trend improvement. • Olympics: 2026 Milano-Katina Winter Games had over 50% growth in linear hours viewed vs 2022, tripled streaming audience on HBO Max and Discovery Plus in Europe. • Transformation: Invested in original content, streaming tech, global networks over past 4 years, leading to creative renaissance.

Warner Brothers Motion Picture Group had a historic run in 2025 with nine films debuting number one at the box office, seven consecutive films opening with over $40 million in sales, and films spending 16 weeks atop global box office. The streaming segment exceeded the 130 million subscriber target set in 2022 and is on track to reach over 140 million by end of Q1 2026 and well on way to exceed 150 million by end of 2026. Global linear networks attracted 30% of all primetime cable viewing in U.S., saw sequential improvement in advertising trends in Q4 and continued into Q1.

• Streaming: On track to exceed 150 million subscribers by end of 2026. • Discovery Global: Debt leverage of roughly 3.3 times net leverage is sustainable. • Streaming profits: Forecast to triple by 2030, drivers include strengthening content slate, volume and penetration growth in new markets, product enhancements, retention improvement, and monetization via pricing and ad sales.

• Forward-looking statements subject to significant risks and uncertainties outside control that could cause actual results to differ materially from expectations. • For additional info, see company's SEC filings including 10-K, 10-Q and 8-K.

Q: Concerns about leverage for Discovery Global and comparison to Versant.

A: Discovery Global has sustainable leverage, expected single B or low double B ratings, has international growth opportunities, strong sports portfolio, profitable Deep Plus, trusted CNN journalism.

Q: What's being appreciated now and drivers for streaming profit triple?

A: Appreciation of investment in original content and creative talent. Drivers for streaming profit triple include strengthening content slate, growth in new markets, product enhancements, retention improvement, and monetization.

Q: International expansion of DCC programming?

A: International businesses turned profitable in 1-2 years of launch, IPs have global audiences, do select international content in markets with strong opportunities.

Q: Video games pipeline and ad sales?

A: Video games 2026 has Lego Batman game in May and Dragonfire mobile game in summer. Ad sales in U.S. saw improvement after NBA headwinds, new upfront kicked in, good scatter premiums, underlying audience delivery healthy. International ad sales stable with potential growth.

Q: Discovery Global cost savings and sports business?

A: Cost savings include NBA savings and AI utilization. Appetite for sports rights, disciplined in deals but open for business.